The current bear market has affected many crypto-related businesses. Amid the failure of Luna and falling assets to near levels not seen in 2 years, crypto is struggling to remain a mainstay – either by hiring, cutting staff altogether, or “for the protection of consumers”. for” by freezing exchanges and withdrawals.
However, not all companies are feeling the effects of the crypto winter. For example, the team at Binance has ramped up its hiring spree.
And on the DeFi side of things, Nexo is trying to corner the market by refinancing other DeFi platforms that are currently navigating the turbulent waters.
Better Planning, Better Business
Recently, Nexo sent a letter of intent to Celsius, stating its desire to buy the latter’s qualifying asset to bail out the platform. Now, Nexo has issued a statement on its blog, explaining why it managed to weather the storm better than some competitors — as well as its intention to capitalize on their mistakes.
Consolidating the space so that it can grow.@nexo working with @Citi On strategic provision of liquidity to those who need it so that their clients who have been hurt can recover their money. Financially sound, Nexo feels an obligation to lead the charge. https://t.co/eVScWv95tb
— nexo (@Nexo) 22 June 2022
In a public statement issued by Nexo, the spokesperson said that going public with the above LOI was an extraordinary decision to attract attention. The company said it has expanded similar Olive branches to other platforms behind closed doors, promising future updates at a more appropriate date.
“Following a public statement of our readiness to help stabilize the industry, Nexo is now in talks with other large crypto companies to develop a major relief plan for the blockchain space. As the situation is both dynamic and sensitive , so we will update you as soon as possible.”
Citibank brought onboard
To further protect itself from the current situation, Nexo has tapped Citibank’s experts to assist in its mission of providing respite to a battered industry, “just like the JPMorgan leadership alleged a century ago.” went.”
Nexo further outlined the reasons why it has been able to step up to the plate and begin expanding its influence in the DeFi space. Of these, Nexo highlights its strict collateral policy — reportedly much stricter than others, and its insurance package of $775 million, which is underwritten by banking institutions such as Lloyd’s.
Asset security was also noted at Nexo, stating that the firm was never hacked or otherwise exploited for client data or funds.
Overall, Nexo is well positioned to capitalize on the current situation. However, the extent of the consolidation is still unclear – and its long-lasting effects remain uncertain.
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